Fewer People Borrowing for Christmas Gifts, Mainly Younger Individuals

According to a recent survey conducted by Ipsos for the Czech Banking Association, a few people are planning to borrow money for Christmas gifts this year. This behavior is exhibited by a mere three percent of the population, with young individuals up to the age of 26 having no issue with it. Among these young people, two-fifths want to take a loan of up to five thousand crowns and nearly a third further up to ten thousand.

“It generally seems that when it comes to Christmas presents, there is a certain skepticism, caution, and lower willingness to spend, or even to borrow for unnecessary things,” said Filip Hanzlík, deputy executive director of the association. He highlighted that as recently as 2021, every tenth person considered a loan for gifts if they did not directly consider it a good idea.

Interestingly, of those currently considering a loan for gifts, a third do not consider their ability to repay their obligations, thus having no fear. Conversely, about thirty percent fear getting into trouble with repayment, and six percent even consider it a big problem they do not know how to solve.

The main reason for borrowing is the unwillingness to wait and save or possibly a discount on purchased goods. People often borrow for children’s toys, apartment furnishings, and consumer electronics.

According to the survey, this year’s Christmas will cost the average household approximately 12,000 crowns. In comparison with last year, this is 1,500 crowns less. People most often plan to spend 3,000 to 5,000 crowns on gifts. A fifth then counts on spending 5,000 to 10,000 crowns. Almost a third of the respondents want to pay up to three thousand crowns for food and drink. More people also want to save on decorations, for which they plan to spend up to 500 crowns.